REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Dahle Bulosan, Chief Financial Officer
Subject:
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Approve and authorize execution of a Professional Services Contract between the City of Huntington Beach and Hinderliter, De Llamas and Associates, for Sales and Use Tax Auditing Services
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Statement of Issue:
City Council approval is requested to authorize a three-year professional services contract between the City and Hinderliter, De Llamas and Associates (HdL) to provide professional sales and use tax auditing services.
Financial Impact:
The proposed new contract includes an annual fixed fee for a total of $16,200 in fixed fees. In addition, HDL would receive 15 percent of any new sales and use tax revenue received by the City as a result of its extensive audit and sales and use tax recovery work, if the tax recovery work is approved by the State Board of Equalization (BOE). This audit fee applies to additional monies received in the first six consecutive reporting quarters beginning with the receipt of the audit revenue, and includes retroactive back-quarter adjustments obtained by the firm. Sufficient appropriation ($75,000 per year for three years) is budgeted in the Finance Department (account 10035201) for year one of the contract. Future years of the contract will be funded through out-year budgets to cover the remaining contract commitment. Payments will only be made for audit recoveries if approved by the BOE and after the revenue has been received by the City. The City received approximately $1.4 million in additional sales tax revenue from a comprehensive multi-year audit recovery project performed by HdL. This recovery was performed under the current contract with HDL that is expiring on July 31, 2020.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between ...
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